Kenya Airways Losses Surge to Sh16.1 Billion Amid Rising Fuel Costs and Supply Challenges

Kenya Airways reported a significant increase in losses for the first half of 2026, with after-tax losses rising 32% to Sh16.1 billion compared to Sh12.2 billion in the same period last year. This surge is attributed primarily to escalating fuel prices and persistent supply chain disruptions.

Despite operating with 9% less capacity, the national carrier managed to grow its revenue by 9%, reaching Sh81 billion. The increase in revenue was supported by a 4 percentage point rise in cabin factor, indicating stronger passenger demand and improved average ticket prices.

Fuel Costs and Supply Chain Impact

Operating costs climbed 14%, driven largely by a 32% jump in jet fuel prices linked to geopolitical tensions in the Middle East. Fuel expenses now represent approximately 32% of Kenya Airways’ total operating costs and over half of its direct operating costs.

Additionally, the airline has faced challenges from global supply-chain disruptions, including shortages of key aircraft parts and delays in component deliveries. These issues have affected aircraft availability and operational reliability, limiting the airline's capacity.

Recovery and Strategic Focus

Kenya Airways is focusing on restoring fleet capacity and strengthening its financial health to return to sustainable growth. Recent steps include the return to service of a Boeing 787-8 and a Boeing 777-300ER, which are expected to improve operational flexibility and network resilience.

Kiprono Kittony, Kenya Airways Chairman, emphasized the airline’s priorities: "We are committed to rigorous cost management, cash conservation, reducing debt, and completing capital raising efforts to build a stable foundation for long-term growth." The airline aims to enhance operational reliability and maintain its role as a key connector between Kenya, Africa, and international destinations.